10/12/2015 Live Update

[Al_Dente]

...VIX is weighted price of out of money options...

Thanks boss
The one you describe there is the original $VXO (expected volatility on the S&P 100 aka OEX)
The one we like is $VIX (expected volatility on the S&P 500)

“ The new VIX is based on the S&P 500® Index …the core index for U.S. equities, and estimates expected volatility by averaging the weighted prices of SPX puts and calls over a wide range of strike prices. By supplying a script for replicating volatility exposure with a portfolio of SPX options, this new methodology transformed VIX from an abstract concept into a practical standard for trading and hedging volatility.”

[josephli]

...VIX is weighted price of out of money options...

Thanks boss
The one you describe there is the original $VXO (expected volatility on the S&P 100 aka OEX)
The one we like is $VIX (expected volatility on the S&P 500)

“ The new VIX is based on the S&P 500® Index …the core index for U.S. equities, and estimates expected volatility by averaging the weighted prices of SPX puts and calls over a wide range of strike prices. By supplying a script for replicating volatility exposure with a portfolio of SPX options, this new methodology transformed VIX from an abstract concept into a practical standard for trading and hedging volatility.”

If you click the document link, it is calculation of VIX with formula. Basically summation of out of money puts and calls price discounted by some coefficient. Like you mentioned, it is "the weighted prices of SPX puts and calls" then as volatility drops prices of options drop, VIX drops as a result.

[Junior Buffett]

...VIX is weighted price of out of money options...

Thanks boss
The one you describe there is the original $VXO (expected volatility on the S&P 100 aka OEX)
The one we like is $VIX (expected volatility on the S&P 500)

“ The new VIX is based on the S&P 500® Index …the core index for U.S. equities, and estimates expected volatility by averaging the weighted prices of SPX puts and calls over a wide range of strike prices. By supplying a script for replicating volatility exposure with a portfolio of SPX options, this new methodology transformed VIX from an abstract concept into a practical standard for trading and hedging volatility.”

Hi Al, I was saying with little change in SnP, drop in VIX price is crazy..smell fishy thats all..I would have expected SnP to pop significant in order for VIX to drop around 5%

[Al_Dente]

......smell fishy thats all.....

Check SKEW today
It agrees with your "fishy"